Biogas Financial Model - Scaling Up to 5 Facilities

Description
Template Features:

• Mode for up to 10 years.
• Monthly / Annual pro forma and integrated 3-statement model.
• DCF Analysis / IRR for project-level and for outside investors / operators.
• Annual Executive Summary.
• Scale 5 facilities, each with their own cost / revenue assumptions and financing assumptions.
• Each facilities can have up to 6 feedstock types.
• Define biomethane yield per 1 ton of feedstock processed, processing efficiency adjustment, and price per cubic meter produced.
• Capacity model so you can show a gradual increase to reach maximum processing capacity per facility.

Starting and running a biogas facility involves various economic considerations that encompass initial capital investments, ongoing operational costs, potential revenues, and economic benefits. The unit economics of such a facility can be broken down into the following categories:

1. Capital Costs
These are the upfront expenses required to build and commission the biogas plant. They include:

• Land Acquisition: Cost of purchasing or leasing land suitable for the installation of a biogas plant.
• Construction and Installation: Expenses related to the construction of digester tanks, installation of piping, gas storage systems, and other infrastructure.
• Equipment: Costs for purchasing core components like digesters, gas collection systems, and generators or boilers if the gas is to be converted to electricity or heat.
• Permitting and Legal Fees: Costs associated with obtaining necessary permits, licenses, and legal consultations.

2. Operational Costs
These are recurring costs associated with the day-to-day operation of the biogas facility:

• Feedstock: Cost of acquiring organic material used to produce biogas, such as agricultural waste, animal manure, or municipal waste. Some facilities may get feedstock for free or at a low cost, but others might need to purchase or transport it.
• Maintenance and Repairs: Regular upkeep of equipment, infrastructure, and replacement of worn-out parts.
• Labor: Salaries and benefits for staff operating the facility.
• Utilities: Expenses for water, electricity, and other utilities required for operation.
• Insurance: Costs for insuring the facility against damage or operational failures.
  
  

3. Revenue Streams
These include all possible sources of income from the biogas facility:

• Sale of Biogas: Biogas can be sold as is or can be upgraded to biomethane and injected into natural gas grids.
• Electricity Generation: If the biogas is used to generate electricity, it can be sold to the grid or used for onsite energy needs, reducing utility costs.
• Thermal Energy: Heat generated can be used internally or sold, particularly if there are nearby industrial or residential customers.
• Digestate: The byproduct of biogas production can be processed into a nutrient-rich fertilizer and sold to agricultural enterprises.
  
  

4. Economic Benefits
These are indirect benefits that can contribute to the overall economic viability of the project:

• Government Incentives: Subsidies, tax breaks, and other incentives designed to promote renewable energy sources.
• Carbon Credits: Earning credits through greenhouse gas emission reductions, which can be sold in carbon markets.
• Waste Reduction: Savings from reduced costs of waste disposal, especially if the feedstock involves waste material that would otherwise require processing or disposal.
  
  

5. Break-Even Analysis

• This is an important economic evaluation to determine when the project will start generating profits. It involves comparing the total capital and operational costs against the revenue streams over time to ascertain the point at which the facility becomes financially viable. You will see charts for ongoing cash position that makes this analysis easy to understand.

Each biogas project may have different unit economics depending on factors like local regulations, feedstock availability, technology used, and market conditions for energy and byproducts. Careful planning and analysis are required to ensure the economic sustainability of a biogas facility.


This template is also included in two bundles:

• All Models Bundle
• Industry-Specific